The timing of payouts for property and casualty insurers is unpredictable (lumpy) in comparison with the timing

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The timing of payouts for property and casualty insurers is unpredictable (“lumpy”) in comparison with the timing of payouts for life insurance companies. Therefore, in general, property and casualty insurers have:

A. Lower liquidity needs than life insurance companies.

B. Greater liquidity needs than life insurance companies.

C. A higher return objective than life insurance companies.

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Investments Principles Of Portfolio And Equity Analysis

ISBN: 9780470915806

1st Edition

Authors: Michael McMillan, Jerald E. Pinto, Wendy L. Pirie, Gerhard Van De Venter, Lawrence E. Kochard

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Question Posted: Mar 22, 2024 01:32 AM

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The timing of payouts for property and casualty insurers is unpredictable (lumpy) in comparison with the timing

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B is correct The unpredictable nature of property and casualty PC claims forces P...View the full answer

Investments Principles Of Portfolio And Equity Analysis

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